How to borrow?
Borrow from connected chains to a connected chain.
To borrow the fastest and easiest way is to navigate to the web interface (dApp). Select the assets and the amount you wish to borrow and submit the transaction.
Once finality is confirmed, your borrowed assets are available on the destination chain. From the moment the borrow transaction is confirmed on the pool chain, you start accruing debt in the form of interest.
Most borrow instances on the UI triggers the Chain Abstracted Liquidity Widget displayed below.
In order to borrow you must first supply to the protocol. Learn more on Supply.
Connect your wallet
In the same way you supplied, you must first connect your wallet through the UI, this can either be done through the Liquidity Widget or top right corner of the navigation bar.
Connecting from any network will automatically switch the application to that network if supported.
Connecting to a different chain
There are a few easy ways to connect to a different networks:
Select a different network through your browser wallet;
Select a different chain from the dropdown bar;
Change the network through the wallet button.
When you select a different network through the application, this will prompt your browser wallet to switch network and switches the application to operate from the network selected.
Select supported asset to borrow
Replete is compatible with many different assets and there are different ways to select an asset to borrow. The easiest method to do so is either through the App page or through the Markets page.
Select an asset on the asset dropdown menu on the Liquidity Widget;
Alternatively, if you have interacted on a supported remote chain, the Asset Widget can also display borrowable assets.
Select to borrow an asset through the Markets page, prompting the Liquidity Widget to trigger.
Note that selecting an asset that is available on a different chain will prompt your browser wallet to switch networks.
Borrowing an asset
Once an asset has been selected enter the desired amount you wish to borrow. There is a maximum amount a user can borrow, this is limited by the users Health Factor.
In the example below Ethereum is selected as the chain to borrow to and USDC as the asset.
Once you are happy with the parameters you can submit the transaction. This will prompt your browser wallet to sign and submit the transaction. A few moments later, after reaching finality, the borrowed assets appear on the destination wallet.
Eligibility, LTV and Health Factor
The maximum amount available to borrow depends on the value of the collateral supplied and the available liquidity for the asset on both the pool chain and destination chain.
Once your borrow transaction goes through, you start accruing debt on the borrowed assets.
The borrowing limit is determined by several factors, including the value of collateral deposited and the available liquidity for the asset. You won't be able to borrow an asset if there is not enough liquidity or if your Health Factor is too low, as borrowing limits are constrained by the Health Factor. The assets supplied by users directly influence the maximum allowable loan value.
Exceeding the maximum Loan-to-Value (LTV) ratio means your collateral will start being sold to cover the debt. For instance, with a max LTV of 70%, users can borrow up to 70% of their collateral's value. If the collateral is valued at $100, the user can borrow up to $70. Therefore, it's crucial to manage borrowing within the specified LTV limits to avoid triggering collateral liquidation. More information specific to any assets LTV ratio can be found on the Market page.
Note that as the value of the collateral fluctuates, so does your Health Factor, which could deteriorate or improve your Health Factor.
Tool tips & settings
If you are well versed in web3, you can also toggle the settings button to have additional features to write and execute the contracts.
Utilize the tooltips to get a better understanding of what they do. Some settings are best left as is, as they can result in the loss of funds if they are not properly used.
Learn more
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